NEW YORK-In an attempt to settle shareholder lawsuits, McCaw Cellular Communications Inc. said it has agreed in principle to increase its purchase price of Lin Broadcasting Corp.’s public shares from $127.50 to $129.50 in cash.
The resolution is expected to facilitate the closing of McCaw’s $3.3 billion purchase of 24.8 million shares of Lin, the remaining 48 percent of the company. McCaw bought 52 percent of Lin in 1989 along with establishing a timely buyout option for the remaining shares. McCaw was purchased by AT&T Corp. last September.
Lin holds valuable cellular licenses in markets such as Los Angeles, New York, Dallas and Houston. AT&T originally valued Lin’s properties at $105 per share, while Lin assessed its value at $155 for each share of stock.
The settlement offer must be approved by Lin’s board and other conditions also must be met. A meeting of Lin shareowners is tentatively planned for late August or early September. A vote by the majority of the Lin public shareholders is required for approval of the sale.
If the final McCaw-Lin transaction is not completed by Sept. 15, McCaw would pay interest on the increased merger price to Lin shareholders from that date until the closing, at an annual rate of 5.5 percent.
The agreement also offers Lin public shareholders an additional sum, up to 25 cents per share, for court-determined attorney fees.
